Bitcoin the blackmarket currency?

Bit+Coin

Bit means smallest unit of digital information generally binary।

1 byte is equal to 8 bits 

Coin means a metallic round shaped measure of money।

So it is digital coin, exists as unique digital number attached to it।it can be bought and sold meaning just digitally added or removed from your account ledger।This is confidential lying in some computers around world connected through internet www।

Bitcoin is a new type of imaginary currency , existing only in a digital number allotted and on chain of few computers in world .But you pay real money to buy this।Amazing ?

Bitcoin has no underlying asset even a brick, to calculate its value . It is a digital unit which is not benchmarked to any other real currency or physical asset . Hence, it is like a casino chip which works at all casinos.The issuing casino has no control on it and the chip can be used any where based on fear factor , demand , last transaction value recorded in these few limited computers , where transactions get recorded and market data।

It means more than one persons record and approve transaction . Who they are ? What is their liability, reliability and responsibility , no one knows.Do they meet together?

It is a software program based on block chain digital data scripting.

When a transaction is done between two members of network, a block of data get recorded in these computers.

Next time when same digital number is transacted , a new block of data is created and added to previous data,  thus called block chain .Hence transaction just cant be reversed or removed by any one person।

Obviously this digital ledger of each bit coin is decentralised in world and is anonymous and under control of no single person

The bitcoin is certainly abuse of this powerful accounting technique, in public domain, though it can be used in companies and public offices for tamperproof  non reversible records and transactions ।It has great potential to eliminate corruption and fraud in govt or company records।

But basic problems are:

1 It has no exchange rate wrt any official currency in world।mostly US dollar is used to express current value।

2 Its value can be 0 , to any amount , any day।

3 Who regulates it ? no one knows

4 it swings wildly।

5 It has no underlying asset।So value is only notional and when some one wants to buy।

6 If you forget your bitcoin digital number , or account password,  bitcoin is gone for ever।

7 It is like hundi used in old village system।But payment value is not mentioned in it।only these persons mutually honour each others transaction at a going price।It is like digital barter trade।

8 Bitcoin purchase has to be through a bank account anyway , hence regular currency is sucked from banking system into blue sky ।

9 It exists and travels in the dark web of internet only।

10 No government or law has to do anything with it।

In India it is not an evidence of payment in court।Unless acknowledged by receiver।

11 It is likely used in terrorist activities ,mafia, and drug deals and in high circles for crimes, luxury, just any thing।

12 Now Bitcoin can be bought sold in parts, like 1/100 of a bitcoin unit like share splits are done, or dollar has cents।

13 Its historical value has changed from 0 to recent 41000$ briefly , since 2009।sheer madness।It is more collectors item and to dispose excessive incomes of some people

It faces wild swings and thus is speculative and gambling like।Now IT department is minitoring for capital gains tax।I feel it should be under horseracing or gambling category for profit। It is like satta bazar (open betting)

14 The posession is just in form of digital number and counts। Like 2 bitcoins। There are hundreds of currencies in world but Bitcoin is most used and relied and accepted।

15 In india it is not State or bank recognised.

Actually govt of india will soon bring law to ban all crypto currency in India

16 You can loose all money anyday if buyers disappear or account is lost।

17 It is a parallel economy and dangerous ।

18 Only 3-4 countries allow transaction to be recognised , yet।In USA now transaction is taxed।

Best thing is bring own official digital dollar and rupee issued by federal banks।

It is digital payment, outside regular system , in private।

Please see, this bitcoin is perhaps first application of new digital block chain internet based multi nodes software program technology।

Bitcoin and block chain are different things।Bitcoin uses this new digital programming technology।

Still hacking and theft have taken place।

You can mine coins by computer power use and your knowkedge।

About 18.5 Million bitcoins are now in curculation with gross market value of 400 Billion US $

Actually it is wrong to call it currency since its own value is in dollar।

Unless we use price of this say the car is 5 bitcoin ।It is not currency।

Note: No accuracy assured of above details and it will be kept updated to make more detailed and remove errors।All articles on our blog are purely in public interest for information and educating।